Russian coal imports to India in March could be highest in over two years: Report

India’s coal imports from Russia in March might be the biggest in more than two years, as Indian purchasers continue to acquire the fuel from a market that is increasingly isolated by sanctions, as per the data from research consultancies.

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According to data from consultancy Kpler, vessels carrying at least 1.06 million tonnes of coking coal, which is largely used for steelmaking, and thermal coal, which is primarily used for electricity production, are expected to arrive at Indian ports in March, the highest since January 2020.

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Russia, which is India’s sixth-largest supplier of coking and thermal coal, might start giving more competitive pricing to Chinese and Indian consumers as European and other buyers avoid Russia due to sanctions, experts said, adding that a rouble-rupee trading arrangement could also help the trade.

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Around 870,000 tonnes of Russian coal have either arrived or is anticipated to arrive at Indian coasts by March 20, the largest since April 2020, according to the Indian consultancy Coalmint.

The figure would be higher if additional coal had been loaded at Russian ports since mid-February, as Russian vessels normally take approximately a month to deliver to India, as per Aditi Tiwari, coal market head at Coalmint.

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“Indian buyers have taken a backseat after the SWIFT ban and sanctions on Russia. They are looking out for alternatives from Australia and the U.S,” Tiwari said.

“Indian buyers are still getting coal from Russia into the market here, but are starting to find it increasingly difficult because banks are not willing to open letters of credit,” the industry source of Reuters said.

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A number of Russian banks have been disconnected from the SWIFT secure messaging system, which allows for cross-border payments.

According to Refinitiv vessel monitoring data and an industry source of Reuter, at least three coal-carrying vessels sailed from Russian ports to India after Russia commenced its invasion of Ukraine on February 24.